Release date- 23082019 - PSU Oil Marketing Companies (OMCs
- IOC, BPC and HPC) have been constrained to suspend supply of jet fuel to Air India and Alliance Air flights at six airports from the evening of 22nd August 2019 due to mounting outstanding dues from the airline and their ramifications for their working capital requirements.
Earlier, on Friday state-owned oil marketing companies (OMCs
) led by Indian Oil stopped jet fuel supply to Air India at six airports - Kochi, Pune, Patna, Ranchi, Vizag and Mohali -- over payment defaults.
Faced with a range of macro-headwinds and a drastically different 'FO-lite' operational environment, we assess the shifts taking place in the operational strategy for domestic OMCs
, while colouring our analysis with expected shifts in the regulatory environment.
In a written reply to the question of Engineer Sabir Hussain Kaim Khani, Minister for Petroleum Division Omar Ayub Khan told National Assembly that OGDCL and HDIP had inspected 298 petrol pumps of different Oil Marketing Companies (OMCs
) in the last six months.
In this connection, Petroleum Division has imposed a moratorium on applications for establishment of new OMCs
by local investors with effect from January 9, 2019, till the new criteria is approved by the Economic Coordination Committee (ECC) of the Cabinet.
"We estimate that the government's decision will reduce the combined EBITDA (earnings before interest, tax, depreciation and amortisation) of the three OMCs
by INR 65 billion (Rs 6500 crore) in fiscal 2019, which ends in March 2019, which is around 9 per cent of their total EBITDA of INR 692 billion (Rs 69200 crore in fiscal 2018).
Contending the remarks, Ogra Chairperson Uzma Adil pointed out that the regulator issued licences to OMCs
after meeting all pre-requisites, including the construction of storage capacity.
GCMS will track the status of OMCs
and update the NPA on OMCs
in good standing.
He said Ogra had no mechanism at the district level to ensure that official prices were in place at petrol stations of OMCs
. Instead, Ogra authorised the district administration to monitor prices at fuel pumps while fuel station owners had good relations with the administration.
Ogra has been informed margin for OMCs
on high-speed diesel (HSD) has been increased by 23 paisa to Rs2.64 per litre compared to Rs2.41.
are in process of implementing DBTL in further 235 Districts.